BlueStone has achieved a significant milestone by reporting its first full-year profit of ₹13 crore in FY26, marking the end of 14 years of losses. According to reports from Value Research, the company's revenue grew 38% to ₹2,436 crore in FY26, driven by 65 new stores and strong fourth quarter performance. The turnaround was supported by the company's studded-heavy product mix, with nearly 60% of revenue coming from studded jewellery versus just 27% at Tanishq and 30% at Kalyan. BlueStone's EBITDA margin improved to 15.8% in FY26 from negative 7.3% in FY23, while gross margin reached 43%, roughly double that of traditional jewellers.
Despite achieving profitability, BlueStone faces significant cash flow challenges, consuming ₹199 crore of operating cash in FY26. As reported by Value Research, inventory rose 62% to ₹2,672 crore in FY26, growing faster than revenue growth of 38%, with inventory per store increasing 31% to ₹7.9 crore. The company's inventory turnover slowed to 1.1 times in FY26 from 1.8 times in FY24, compared to 2.2 times at Titan and 3 times at Kalyan. BlueStone's debt-to-equity ratio improved to 0.92 times and interest cover rose to 1.85 times, but with ₹275 crore of long-term debt maturing in FY27, the company will need stronger internal cash generation to fund growth.
BlueStone operates 350 stores with over 90% of sales coming from in-house manufacturing across Mumbai, Jaipur and Surat facilities. According to Value Research, the company's average order value has doubled to around ₹66,000 over three years, while repeat customers contributed 54% of FY26 revenue. The company's same-store sales growth (SSSG) was 18.4% in Q1, 11.1% in Q2, 12% in Q3 and 34% in Q4 of FY26. Management is targeting over 700 stores and ₹12,000 crore revenue by FY30, requiring 20% growth from new stores and 30% from same-store sales. The company has demonstrated consistent expansion, adding more than 80 stores in FY25 to reach 275 stores, followed by 65 additional stores in 2026 to reach 340 stores.
BlueStone's stock has performed exceptionally well, trading ₹813.4 with a 47.87% return over the past year and 1.31% gain in the last month. As reported by latest market data, the stock has fluctuated between ₹794.55 and ₹819 in recent trading sessions. The company completed its IPO in August 2025, raising ₹1,540.65 crore through a fresh issue of ₹820 crore and offer for sale of ₹720.65 crore. The ₹12,000 crore market capitalisation represents 26 times earnings that are four years away, based on projected FY30 revenue of ₹9,400 crore. The analysis suggests that while BlueStone has proven it can make a profit, it still needs to demonstrate the ability to grow that profit into sufficient cash generation to fund the aggressive growth investors are paying for.
